Can I resell a home that I buy with quit claim deed?

[Jay Schwichtenberg]

I notice that the banks are selling a lot of their property in auction with quit claim deed. I understand what quit claim is, but I'm not sure if I understand what the means for the title. For example, if I buy the property and fix it up and resell will my end buyer getting a loan be able to purchase it? Or will the quit claim deed from the bank put a cloud on the title? I am from Texas and I'm curious if title insurance will be an option and if banks will lend on this. Any title companies in Texas that insure quit claim would be appreciated. Thanks.

Jay

[Jon Holdman]

I though Texas didn't accept quit claim deeds as a legitimate forum of transfer. Have you spoken with a title company about this? This is not common practice here for banks. They usually give a special warranty deed, not quit claim. The only time I've seen quit claims being used is for bulk REO junk where there really are title issues. You as the buyer have to clean those up in order to be able to pass on a clear title to your buyer.